Southeast Asia's Grab to offer mapping services to other firms in search for profit

 

Grab Holdings Ltd (GRAB) said on Wednesday it would offer its in-house mapping and location-based services to businesses, as Southeast Asia's No. 1 ride-hailing and food delivery firm chases profits.

GrabMaps, an internal mapping service used by the Singapore-based firm's drivers and delivery partners, is being pitched to businesses seeking hyper-local location solutions in the densely populated Southeast Asian countries.

Grab, which operates in eight countries in the region and had nearly 31 million active monthly users as of March 31, is looking to cash in on the mapping sector in Southeast Asia, expected to be worth $1 billion by 2025.

Indonesian ride-hailing and payments firm GoTo Gojek Tokopedia (GOTO) is Grab's biggest competitor, followed by Singapore-based e-commerce, gaming and digital payments firm Sea Ltd (SE).

The loss-making company, which has spent money on promotional offers and driver incentives, has said it expects reopening of offices and resumption in travel to drive a rebound in its rideshare and food delivery businesses. 

Jun 8, 2022, 18:23 - Reuters

 

Low-risk Buying Opportunity for Meta / Facebook Investors.

 

For a company like FB that previously commanded an earnings multiple of nearly 30, a weaker earnings trend than anticipated can wreak havoc, and this is exactly what we've seen, with FB correcting nearly 50% from its highs in less than six months. The good news is that this has left the stock quite reasonably valued, sitting at less than 14x FY2023 earnings estimates. This is a very reasonable multiple for a stock that's expected to see a new high in annual EPS in FY2023 and FY2024, after a blip in FY2022 ($12.55 vs. $13.77).

In fact, FB's historical earnings multiple sits closer to 30 over the past decade. Even if we adjust for the slower growth rate going forward and assign a fair earnings multiple of 18, this still points to a fair value of more than $266.00 per share. This translates to more than 25% upside from current levels, suggesting that the stock finally offers some value to investors. Let's look at the technical picture below:

(Source: TC2000.com)

Moving over to Meta's technical picture, we can see that the stock has plunged by nearly 50% from its highs and has found itself hovering just above a key support level at $190.00. Meanwhile, there is no strong resistance for the stock until $317.00, given that no strong resistance levels have been built on the way down, due to the torrid pace of the correction. This provides investors with a more than 10 to 1 reward/risk ratio from a technical standpoint from the $200.00 level.

Obviously, this attractive reward/risk ratio does not have to translate into higher prices, but it certainly has created a relatively low-risk buying opportunity for investors. Hence, for investors anxious to add exposure to FB to their portfolios, I would view any pullbacks below $200.00 as an attractive point to start an initial position in the stock.

While we have not seen any confirmation of capitulation from a sentiment standpoint, the market has become quite oversold short-term and is nearly as oversold as it was in March 2020. This technical setup favors being open-minded to a short-term bottom and the potential for a 10% plus rally in the QQQ from the $320.00 level. With FB trading at less than 14x FY2023 earnings estimated offer low-risk entries below $200.00 respectively, for an initial position.

Disclosure: We have 100 units positions in stock mentioned but may start a new position in META in the next 24 hours.

Disclaimer: www.11.com.my is not a Registered Investment Advisor or Financial Planner. This writing is for informational purposes only. It does not constitute an offer to sell, a solicitation to buy, or a recommendation regarding any securities transaction. The information contained in this writing should not be construed as financial or investment advice on any subject matter. www.11.com.my expressly disclaims all liability in respect to actions taken based on any or all of the information on this writing.

 

Technical Analysis for FB by TradingView